You lost me at "patent pending". This idea has been obvious and in progress for a while now with lots of prior work. The issue is more the standards. Please don't sell this to a patent troll who will harass the industry for 20 years.
"We, the armchair internet, have come to shout at you, innovative dude, that your ideas are worthless and that your interesting product is just fodder for patent trolls," ignores a few minor things -
• The video codec industry is absolutely crawling with overlapping patents enforced by shell companies whose only purpose is to extract license fees from every screen that ever existed. The USPTO seems to not care.
• This video codec was produced cleanly, and does not appear to overlap with any of the existing codecs.
I'd say give this smart person some credit.